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February 2018

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The man-made fibre sector in Indonesia has received a boost, with three major manufacturers having invested US $7.1 million on new plant and machinery which will help them cut costs.

The three fibre manufacturers are PT Teijin Indonesia Fiber Corp., PT Indonesia Toray Synthetic and PT Sulindafin. The new machinery will run on cheap gas instead of costly electricity and help them make competitive.

Giving out details, the Secretary General of the Indonesian Synthetic Fiber Producers Association (APSYFI) said that, the new machines are capable of slashing between 5 and 10 percent of the current energy costs incurred by the companies. These three companies had purchased the new machineries under the technology up-gradation programme initiated by the government, which entitles them to claim a subsidy of 10 percent on total investment.

He said that there were 18 synthetic fiber manufacturing companies in Indonesia in 2007, out of which only 12 were operational and that the sector was experiencing a 10 percent hike in production costs due to the rise in crude oil prices.The state owned electricity company was planning to implement a hike in energy costs and if the government approved the same, it would mean a double blow to those fiber manufacturing companies which are using electricity, he concluded by saying.